University life can be expensive, but here’s some good news: most full-time students don’t have to pay Council Tax. However, the rules can get confusing, especially if you’re sharing accommodation with non-students.
With over 10 years of experience, we’re here to clear it up - do students pay Council Tax?
In this blog, you'll learn who needs to pay Council Tax, who’s exempt, how to apply for a Council Tax discount or exemption, and how living with non-students impacts your exemption. So, let's start by understanding what Council Tax is.
Simply put, Council Tax is a charge on residential properties set by local authorities in England, Scotland, and Wales to help fund essential services in the community.
Introduced in 1993, under the Local Government Finance Act 1992, Council Tax helps cover the cost of schools, waste collection, road maintenance, libraries, parks, leisure facilities, and more to make the local community a better place.
In England and Wales, the Valuation Office Agency (VOA), part of HMRC, assesses properties for Council Tax. Properties are placed into Council Tax bands (A-H) based on their type and location, with A being the lowest and H the highest.
The Council Tax band is calculated using the price that the property may sell for on the open market at the time of the rate valuation.
Source: Based on Liverpool City Council
In the UK, you need to pay Council Tax if you’re over the age of 18 and live in a property that is legally required to pay Council Tax.
When it comes to paying the tax, there should be a dedicated person, known as the ‘liable person’. They are responsible for paying the Council Tax.
If you live in a house as a couple, you will both be 'jointly and severally liable'. In this instance, you are both accountable for paying this tax, both as a pair and individually.
Not everyone is in similar positions, and for this reason, there are some exemptions on who needs to pay Council Tax. You are exempt from paying Council Tax if you are:
A full-time student is someone that is enrolled in a course lasting at least one academic year, attending classes for 21+ hours per week over 24+ weeks per year.
Eligible courses include undergraduate (Bachelor of Arts (BA), Bachelor of Science (BSc), Bachelor of Education (BEd) and Bachelor of Engineering (BEng), postgraduate (Master’s, PhD, or Doctor of Philosophy) and vocational programmes.
Part-time and short-term courses usually don’t qualify for Council Tax exemption so make sure to check your enrolment details to confirm your student status.
Student accommodation, such as Purpose-Build Student Accommodation (PBSA), like Stockton Students, and Houses in Multiple Occupation (HMOs), are exempt from paying Council Tax if only full-time students live there.
PBSA: Examples of PBSA include shared apartments or private studios that offer shared social spaces such as games rooms, shared kitchens, rooftop terraces, lounges and cinema rooms.
HMO: An HMO is a property where three or more people, who aren't from the same household, share living facilities such as a toilet, bathroom and kitchen.
If you live in a household with both students and non-students, the Council Tax rules change. In Liverpool, mixed households may qualify for a 25% discount.
Who pays Council Tax depends on the household type. We’ve broken down who holds the responsibility of paying Council Tax below:
If you do happen to receive a Council Tax bill, then you can apply for an exemption through your local council. Here are the steps you’ll need to follow:
1. Follow this link to start your application
2. Provide your student details (including your place of study, course details, start and end date and student ID number)
3. Review the privacy notice and submit your application
To avoid any misunderstandings and financial disputes, it’s important to have a complete understanding of the rules regarding Council Tax as a student in the UK.
As a full-time student, you're exempt from paying Council Tax for the duration of your educational course. However, once your studies end, you’ll be responsible for covering this expense.
If you’re heading to university in Liverpool or Ormskirk this upcoming year and are thinking of moving out, then we, at Stockton Students, are your go-to student accommodation provider.
Choose from our range of modern ensuite student apartments and enjoy the ease of inclusive bills. Find your future student home today or reach out to our friendly team if you have any questions.
Landlords are responsible for Council Tax on empty properties, HMOs, and student-only households. Otherwise, tenants over 18 are usually liable. If you’re an adult living alone, then you may be eligible for a 25% single occupier Council Tax discount.
Landlords are not liable if the tenancy agreement states tenants must pay. To avoid issues, landlords should include Council Tax terms in agreements, inform the council of tenant changes, and keep records.
If you are a full-time student, your visa status does not affect your Council Tax exemption. The exemption is based on your enrolment as a full-time student. When you reach the official end date of your course, you will then be required to pay Council Tax in the UK.
No, university students who meet the criteria for full-time study are completely exempt from Council Tax in the UK.
Landlords are not required to pay Council Tax for properties fully occupied by full-time students. However, they are responsible if the property is empty or if it qualifies as an HMO.
